The hedge fund founded by Paul Marshall and Ian Wace, is shorting several companies in Japan. Marshall Wace has a short in Juki Corp (TYO:6440), a manufacturer of sewing machines and other industrial equipment. Marshall Wace’s Eureka Fund is holding 0.4% of Juki Corp (TYO:6440)’s shares short. The threshold for disclosure of short position in Japan is 0.25% of outstanding shares, as opposed to the 0.5% limit enacted by European Securities and Markets Authority (ESMA).

Marshall Wace doubling down on Japan

The company’s mid year guidance released in May forecasted a revenue at ¥47,00 million, operating profit at ¥1,700 million, net loss of ¥800 million and earning loss per share at ¥6.19 for FY2013. Juki also cancelled its mid-year dividend for this year. Juki closed down 4.5% in Tokyo today, shares have gained 20% YTD. Nomura International also has a 1.1% short in Juki Corp.

The other company that Marshall Wace is betting against is Mito Securities Co Ltd (TYO:8622). As the name indicates, the company provides secure solutions and deals in marketable securities. Marshall Wace had a 0.33% short in the company as of July 22.

According to a November 2012 filing, Nomura Research Institute has a 7.5% long position in Mito Securities Co Ltd (TYO:8622).

Other Marshall Wace shorts

Other shorts from Marshall Wace include a 0.3% short in NICHII GAKKAN COMPANY (TYO:9792), a nursing care company and a 0.35% short in OIZUMI Corporation (TYO:6428), which provides automation services and also has real estate business. Marshall Wace also had bets against AltPlus Inc (TYO:3672) and TOKYO ROPE MFG. CO., LTD. (TYO:5981) which it has covered to below threshold level.

Marshall Wace has done reasonably well in its long/short funds, the flagship MW Eureka Fund A1, with $3.6 billion, is up 14% through June of this year. MW Core, $1.3 billion, is only up 5.7% in the same period. Marshall Wace Global Opportunities with $1.1 billion has gained 11.9% through the first half.